Order Allocation Model and Supplier Evaluation in Textile Industry with Fuzzy OPA and RAFSI Methods

Abstract

Increasing competition, accelerating production processes, and dynamic market conditions are forcing companies to make strategic decisions. Effective management of contract supply production processes is essential in the textile sector to promptly meet customer demands while ensuring high quality and affordability. In this context, choosing the best subcontractor is crucial for a company seeking a competitive advantage. Factors such as supplier capacity, quality of workmanship, timely delivery, and cost efficiency have a direct impact on the performance of textile companies. During the supplier evaluation process, factors such as sustainability criteria, efficiency, speed, and quality should be taken into account. This study proposes a decision-support methodology for evaluating subcontractors in textile companies that outsource manufacturing. The methodology incorporates a two-tiered Pareto analysis to identify focus product groups, fuzzy multi-criteria decision-making techniques for subcontractor assessment, and mathematical modelling approaches for capacity allocation. A real case study is presented to identify the most profitable product groups via Pareto analysis, to evaluate subcontractors through the Fuzzy-based Ordinal Priority Approach (OPA) and the Ranking of Alternatives by Functional Mapping of Criteria Sub-Intervals to Single Intervals (RAFSI) method, and a mixed-integer programming model for scheduling orders to subcontractors’ production plans. The proposed approach enhances the effectiveness of the supplier selection process and offers a practical framework for strategic decision-making in contract manufacturing in similar industrial settings.